The tycoon behind Sh7.6bn oil scandal

Mr Yagnesh Devani (second right) with from left Prime Minister Raila Odinga, former Vice-President Moody Awori and Deputy PM Uhuru Kenyatta when Triton company launched its operations in Kenya in 2006. Photo/FILE

What you need to know:

  • Triton’s Devani is a flashy big spender who hobnobs with Kenya’s high and mighty

The man whose extradition is being sought by the Government in connection with the Sh7.6 billion oil scandal is a 43-year-old businessman whose ambition was to join the elite club of the richest people in the world.

Mr Yagnesh Devani (second right) told friends that he aspired to emulate the achievements of the Reliance brothers, an Indian family with interest in petrochemical industries under the trading name Reliance Industries, with a fortune estimated to be $49 billion (about Sh3.7 trillion).

But on Tuesday, Energy minister Kiraitu Murungi said the Government had sought Interpol’s help to have Mr Devani, together with other directors of Triton Petroleum Company arrested over the scandal.

Accountancy firm PriceWaterhouseCoopers had been contracted to carry out a forensic audit to establish the scope of the fraud.

Mr Devani has a reputation as a shrewd businessman who hobnobbed with the high and mighty in the political and business circles.

But close friends said his main firm suddenly ran into problems and was placed in receivership even as he sought to be among the world’s who-is-who in business.

The father of one lives lavishly, is outgoing, but is also said to be very secretive in his business deals. None of the other directors had details of the company’s financial operations.

He savoured the good things in life, from designer suits to top-of-the-range vehicles. He also loved to throw lavish parties in top-notch city hotels.

Close friends said he had a fleet of expensive vehicles, among them a Mercedes S600, whose current market value is in the range of Sh24 million and 30 million, an Audi worth about Sh18 million, a Range Rover Sport, and a Toyota Lexus, among a fleet of close to 10 vehicles.

But this was not all; more cars, his close associates said, lay in a London house estimated to be worth about five million pounds (Sh550 million). He visited UK occasionally on holiday to enjoy the fruits of his labour.

A story is told of how Mr Devani in 2007 flew in guests from the UK and India to celebrate his wife’s 40th birthday.

All the guests flew first class and on the eve of the party, Mr Devani chartered a plane to bring in a top singer from India to perform alongside a top UK jazz band. About six foreigners mainly from UK, handled the entertainment agenda.

Hairdressers for the occasion came in from UK and the United Arab Emirates. Some special guests were presented with classy Rolex watches.

The three-day party, “rumoured to have cost upwards of Sh300 million”, was partially held on a special hired dhow as the Tamarind one in Mombasa was considered to be too small for the 200 visitors who dined as they sailed. The Tamarind dhow carried the food.

The associate said Mr Devani could have been aping Mr Mukesh Ambani, one of the Reliance brothers, who is said to have given his wife a Sh4.5 billion Airbus 319 with entertainment cabins, a sky bar and fancy showers as a birthday gift, saying, “it matters little to me whether my personal fortunes are measured in billions or millions”.

Reliance Industries put a bid jointly with Triton to buy a 50 per cent stake at the Kenya Petroleum Refineries, but they were beaten to it by a Libyan firm.

It was the only Indian firm to feature in the Forbes 100 most respected companies in September 2008. Mr Devani owns a five-storey house in Mombasa’s posh Nyali estate.

Because of the size of the house, the businessman is embroiled in a row with a Cabinet minister who wants it demolished because it blocks her the breeze and view of the Indian Ocean. He also owns a big house in Nairobi’s leafy suburbs of Lavington.

Another close associate added: “He is a man of good taste… you could see it from his designer suits and office furnishing.”

A trained stockbroker and commodity trader, Mr Devani has rubbed shoulders with the high and mighty in Kenya. Sources said the who-is-who in the political class must have met the businessman at one point or another.

But he had a lot of contempt for the same politicians whom he described in derogatory terms after giving them handouts.

In 2006, a ceremony to launch Triton’s operations in Kenya was attended by then Vice-President Moody Awori, Mr Raila Odinga, Cabinet ministers and several permanent secretaries.

Mr Devani also attended the much-publicised Sh1 million a plate lunch to fundraise for President Kibaki’s re-election campaign. He is said to be one of the independent oil dealers who challenged the multinationals cartel in the industry.

He won tenders to import oil products for all the dealers in the country through the Open Tendering System (OTS) organised by Government.

In the system, oil firms bid to import on behalf of other marketers and the lowest bidder gets the tender.

Triton won its first big tender in 2004 for a period of three months and won again last year for the same period. Jointly with Total, Triton supplied KenGen with oil products.

Bulk storage

Close associates said Triton was successful within the short time it was in the market operating 20 petrol stations.

It was building a 70 million-litre bulk storage depot in Kipevu, Mombasa, estimated to be worth between $30 million and $45 million (Sh2.25 billion and Sh3.4 billion). It is said to be incomplete.

It is understood that the company’s problems started when one of its financiers withdrew its credit because of the global credit crunch.

The company, faced with a huge and lucrative contract to supply KenGen with oil products, colluded with Kenya Pipeline Company officials to release oil without its other financiers – Kenya Commercial Bank’s knowledge.

But Mr Devani often found himself at the centre of controversy involving oil. In 2002, he and four of his employees were accused of stealing oil worth Sh62 million belonging to Petrol Oil (K) Ltd.